Payment in Kind
What It Is:
Payment in kind refers to the use of a good or service as payment instead of cash.How It Works/Example:
Payment in kind may be made for an exchange of goods or services for work performed. The value of the goods or services is considered an equal exchange for the work performed.Examples for payment in kind may be room and board in exchange for home or grounds maintenance or company stock or other securities instead of cash in a retirement plan.
A loan is referred to as "paid in kind" when a similar article is returned by the borrower. In the case of a will, payment in kind allows the trustee to make distributions to the beneficiaries using equivalent values rather than having to sell assets to get cash. For example, if an estate is to be divided equally among beneficiaries, the items may be distributed based their value and not their actually conversion to cash, allowing the trustee to distribute cars, houses, jewelry, and even stocks of equal worth.
Why It Matters:
Payments in kind in the place of wages are still taxable. For example, employees will have payments in kind reported on their W-2 form. If a business receives payment in kind as a payment for goods or services, it must include the fair market value of the payment in kind item. Payments in kind to business are reported on the business's Form 1099-B, "Proceeds from Broker and Barter Exchange Transactions."My Source is: http://www.investinganswers.com/financial-dictionary/businesses-corporations/payment-kind-632
49 comments:
Simply I want to understand this "payment in kind" that Peru is fond of using. First was the BB gun club when city workers on city time were working for the BB gun club which is actually a private group of individuals.
Now we are doing work for Ms Noonan "in kind" and will someone please tell me what we got back. The City Employees on city time that we support with our tax dollars were actually working for Ms Noonan.
In neither of the cases did the residents of the city benefit. The Public Works Dept. is always complaining of being short of help but evidently not too short to do "in kind".
Not enough time to take care of the city but enough time to take care of superfluous work when the mayor and spw want something done.
What is more interesting are the volunteers who perform labor in kind for the promoter directly. Who reports the value of their labor on their tax return.
These individuals are not volunteering for a church bazaar or non profit. They are volunteering their services so a business can make a profit on concessions. The value of their labor in kind needs to be reported on all tax returns for the business.
Lois - I assume the city workers were instructed to help these private for profit businesses while on city payroll per the instructions from their supervisor and mayor.
9:36 PM
I have found out they did not keep time sheets for the time spent at the airport!! That is the public works dept. Yes you are correct re: orders
What did their timesheets say then? Who authorized them to lie. We all know they were working at the airport.
They don't realize how much information can be obtained thru a FOIA and that all emails can be foia'd. And all aldermen are aware of what is taking place at "the palace" because they have all the emails also.
If you planned on doing the work "in kind" why would you keep timesheets? Evidently something else they don't know.
I would think the timesheets become official records. Can timesheets be FOIA'ed?
Time sheets people! This is a charity concert. This ain't no different than cleanin up at the fourth of July, or for punkin days, or BilliyBobs nasty hangnail fundraiser!
We care here in the Illinois Valley . We volunteer! We support Charity! Well as long as there's a raffle and beer we usually support it.
Do you think our city or some fine business would take advantage of our desire to help out? Are you crazy?
They even bought the aldermen shiny vests fer darn Gosh sakes.
And what about the Tshirts!!!! I never hear Kristy or Lois thanking the Pizza place for all the Tshirts. I costs money to make Tshirts! They don't grow on dang nab trees .
If you don't want the bars a hoppin and the gas stations a pumpin , and you don't want any culture brought to our town , well just poo on you all.
And, sadly, I must state that all of the above is sarcasm and I think the concerts are a scam. I only say this because some people will read this and start arguing with it lol.
Let's not forget all the personnel and city time spent on building the BB gun club during regular city hours. Remember, we seem to never have enough personnel to do the things that need to be done to run our city. As a result many of the jobs that used to be done "in house" we now hire out.
Well Lois I assume since you visit most of the council meetings you will bring this up or have someone bring this up at the next council meeting?
11:03 AM
I put this up for you, the alderman have already been notified, they know. I don't don't need an answer, I already know what we are dealing with. OH, if you are an alderman, I don't really believe you care or you would have brought this up at a meeting a long time ago.
Kudos to your blog Lois ! Referencing to the 12:01 post. We all know that alderman, elected persons and department heads and city employees in all departments read these blogs and blog on occasions using annoymous as their alias.
Lois 9:51
There are timesheets for every day an employee works. Clerk collects them.
Anon 10:27 Who fills in the time sheets and are they handed in daily, weekly or whenever.
The City of Peru does not have a time clock which employees have to punch in and punch out.
Does anyone have any updates on the water treat contract? Has Ald. Waldorf given the reasons why he wanted it finalized 4 1/2 months before it is due and why would any GOOD representative try so hard to avoid competitive bidding?
It is doubtful that Mayor Harl will allow any contract to be signed that is over $20K without competitive bidding as this is one of his major campaign issues. Also he has been a huge proponent of term limitations in the past. This is one of the reasons many do not expect him to run for Mayor again. Eight years is long enough to get whatever done.
11:30 And what makes you think he will not allow the Test contract to be passed without going out for bid??? If that were the case wouldn't he have allowed the representatives that were at the last meeting to speak??? After all, I believe they represented a company that was possibly interested in offering up a bid. Could anyone expand on this topic such as is any more being done to expose what actually happened to this out=of=towners???
For the past how many years it has been a accepted method of all business to have a time clock for employees?
Does the insurance company know that the city does not have one? In case of a personal emergency how does a supervisor even know that a employee has come to work and is still on the job without the individual punching in and out. In case of a work related accident how does the city verify whether the employee was presently on the job? Recent discipline problems and numerous closed sessions should be making the council aware of the necessity of having a time clock, extensive documentation and work rules for the employee and equipment.
Isn't it astonding that the former home of Westclox the largest time piece manufacturing facility in the world hasn't had a time clock for its employees.
Remember Mayor Harl will not have a vote in the TEST contract unless the vote goes 4 to 4 with the aldermen. You all need to contact your aldermen and the mayor and let them know you think this contract should be bid because it's the right thing to do!
11:08. As long as there is not a Super Majority, then the bid will be as prescribed by the intent of the law. Basically, only two other votes besides alderman Perez. Since Potthoff I believe voted against this most recently, I would hope that there is enough uncertainty to just do the easy and right thing and let TEST win it fair and square.
If ever there was a night to show up, pass out leaflets, talk to the press, even protest outside, this is it. You need to shine the spotlight on this Super Majority ploy. And if there are others who have unusual ties to TEST, you need to have a real newspaper investigate and expose it. There was a lone picket out in front of a RAT! You are only picketing now for a fair bid! This is a real a winnable position. You are not going to get rid of a Rat, but you can draw attention to a no bid.
If the people in Peru want to just give away 3 million, crying about a pool all the way, then they will get what they deserve . But if they can save half a million by competitive bidding, doesn't it seem to be a no brainer?
Time cards are the first thing a work comp carrier will ask for.
all they need is a super majority, is what I understand. They only need 6 aldermen to want a no bid, and it goes through. 4 won't do it. If they have 6 its a majority.
And I'm sure they pretty much know which way an aldermen is going to vote. I also think someone put Waldorf up to bringing this up, I don't feel he is smart enough to do it on his own.
What a waste of a phone call contacting alderman won't make a difference!
I was just reminded that this vote will take a super majority. That means 6 of the 8 aldermen must vote in favor of TEST. If less than 6 vote yea, then it will be bid. Mayor Harl will not have a vote on this, but that doesn't mean he's not making his choice known to the aldermen.
Has anyone ever taken their water to another facility and have it tested? That would be interesting to see the comparison.
Anon 2:07 A phone call to the aldermen will make a difference as not making a phone will not make a difference. Once aldermen see that their constituents are watching them and studying their voting records they will become representatives of the people unless they are total idiots or don't care to be reelected.
The only other reason would be that the prize in the cracker jack box is big enough to sway the vote. Have you ever spoke to any Peru representation that has been to the IML convention or anyone from the TEST organization that never fails to show up at the convention even though they are not a elected city official. It is a known fact that Peru has had certain businesses that have treated city officials so good for so long that their generousity is considered as fringe benefits. This is shameful.
7:06 I agree with most of what you said, except the fact that many municipal vendors attend that convention. it is their client base. That is where you go to find and sell your potential municipal customers.
Also, taking customers to lunch or dinner, and making small campaign contributions is not shameful or illegal. When a company does millions of dollars of business with a city, they stay close and do some entertaining.
Many who have no idea about business call it shameful. It is not. What is shameful are idiot alderpersons who then do not force that business to actually sharpen their pencil and bid. Don't blame the business for that, blame soft , contented cows that call themselves leaders.
Anon 1:54 I'd say someone more than put Waldorf up to supporting TEST. The way he stammered and studdered they also recommended he start his verbal support in August so that he would have enough time to put the words together before contact time in December.
After hearing his presentation which he was giving on his own he fully proved that he is incapable of intelligent thought and is only reading the reports he recieves from TEST and Chamlain Consultants but does not understand one iota of what he is saying. Who appointed this man to the Public Works Committee which has the responsibilities of the electric dept., the water and street depts., and recently took the airport away from the Public Property committee (where it belongs) and reassigned it to the Public Works Committee. I question not only WHO but also WHY.
9:05 PM
Our questioning falls on deaf ears at the public works committee level of Lukosus and Waldorf. Mayor Harl is very difficult to comprehend at this point because he campaigned not once but twice with the promise of going out for bids on large projects and especially on the TEST contract. Has he explained his change of heart? Saying not a word, he knows that he has LIED to the people of Peru in order to be elected as mayor and he will remain silent and let the aldermen do his bidding.
8:46 pm makes some very good points. I understand the business aspect of relationships between elected officials and vendors who do business with public bodies.
Unfortunately, Peru has elected officials who are easily influenced by a few meals and beverages for themselves and their spouses a few times a year. It is embarrassing that we have aldermen and a mayor who are too lazy to do the actual work of making a legitimate effort to research the real options for this or any other service contract. Our aldermen and mayor sit there like stumps and just do whatever they are told by TEST and Chamlin.
They don't even seem to understand that it is their responsibility to make these decisions based on what is in the best interest of the city as a whole. Not what is in the best interest of the guys who buy them and their spouses cocktails and Prime Rib at the IML Convention.
Considering the return that TEST and Chamlin are getting for a little glad-handing and back-slapping, those two companies are investing pennies and earning dollars. Big time!
I think some people should be allowed to pay their city utility bill "in-kind." The city should have a program where people must register their income with the clerk. If they make the same or less than the average city worker, then they could do odd jobs to pay their electric and water bill "in-kind." If they are to old or they say they are disabled, then the city could transfer their bill to one of the rich people or maybe one of the businesses.
Have they started planning for the fireworks next year? I think they are on a Thursday next year - maybe somebody should start working with the rail road now - instead of the day before. Or how about this - give the $20K to LaSalle and have a joint show at the new park.
Anon 8:46 There is a huge difference in going to the Illinois Municipal League to find POTENTIAL municipal customers and going to bribe your PRESENT municipal customers.Your second paragraph states that taking customers to lunch or dinner and making SMALL CAMPAIGN CONTRIBUTIONS is not SHAMEFUL or ILLEGAL. I question how SMALL the CAMPAIGN CONTRIBUTIONS are and how often they are happening.
I find it shameful that a corporation chases a taxpayers representative over 100 miles to pay homage to a group of elected officials and that the representatives willingly accept this animal in heat approach.
Homage seeking which is resulting in a guaranteed no bid multi million dollar contract of 5 years at the taxpayers expense. I also find it shameful that because of lack of interest in the City of Peru by a majority of its citizens that we have what you call "contented cows that call themselves leaders". These cows are way too full of themselves and their own fluff to ever be mistaken for leaders.
The one big difference between a cow which regurgitates it meals numerous times and a Peru city official is that there is always a business willing to buy the politician a cow. Maybe it would be better if a business was willing to buy the cow a politician.
Now What as caring citizens of Peru are WE going to do about this water treatment situation? Let US start by attending the Peru City Council meeting next Monday Sept 9 at 7:30 P.M.
Anon 4:59 Great idea! A huge attendance at the council meeting on Sept 9 would be great. Lets have a campaign slogan such as
"Pack the Chambers Night". Has anyone have a slogan they would like to submit. Please do, rules are: you do not need a 3x5 card with subject and name of participant on it, the slogan may be as long or as short as you like with no 3 minute or number of word limitation and above all if you like you can turn it into a question and answer session.
To insure a full house next Super Majority Monday meeting the first 100 in attendance should receive a free cabbage head doll named D_ _E.
I agree 4:59 that we should attend Sept. 9th city council meeting. But, will just attending be enough or will some individuals stand up and ask their aldermen to vote "no" when it comes to renewing the Test contract without going out for bid? And, if some are willing to speak will they be allowed to or will they be denied their right as apparently some ladies were at the last council meeting?
Lets all make signs and picket before the meeting, get there early enough so we can have people at all the doors and make the aldermen walk through us to get into the building. Start thinking of what we want the signs to say.
What we really need is the ambassador of deer spotting to come up with some clever sayings for our signs. come on A of DS what do you say, will you help?
A of DS here.
I think the slogans can be simple.
Things like...
We are not stupid.
No Bid Contracts are Dumb.
You are Dumb
Dumb, Dumb ,Dumb
I think you can see the general theme coming through.
All I know is I am going to bring my whacking sticks, because if you can get twenty or thirty people picketing that building and a reporter from PJS, many in that chamber will have a deer in the headlights look, and under our special fall rules, that counts for deer spotting.
Remember TEST stands for
Those Exceptionally Secret Trustees. Where HyVee is owned by its employees, TEST is owned by it's customers. Cuts out the middleman.
6:38. The time for people to stand up and talk to their alderman is now. Call them and tell them you are not in favor of them giving this contract to TEST without a bidding process first. Do it before the meeting and then pack the house on Monday!
Any city employee, PD, FD, or Ambulance employee that worked the concert should be paid in free pizza coupons.
11:20 Unfortunately, the city has to pay for their time in US currency. it would be best if the sponsor reimbursed the city in similar fashion. Dough, cheese and sauce are cheap.
I called my aldermen. Did you call yours? Mine said they would vote as the people request them to vote. So, if you don't ask them to vote NO to the TEST contract without a bidding process you can blame no one but yourself.
The city employee, PD, FD are public employees hired and paid by the city government for designated city purposes. They also have a package of fringe benefits which are financially supported by the same government.
The equipment that is used to do their job is also financed by the same public source.
At a private venue why does'nt the promoter have to employ a private security force, a private fire safety force and a private clean up crew? If anyone from these groups wishes to enter into a private agreement with the promoter on their own, seperate of the city so be it.
There is not a disagreement with the promoter having a concert but the disagreement is the intermingling of the promoter, mayor, council having a private business venue on public property utilizing public services under questionable cause.If the Amnbulance Service is private as it is thought to be they are perfectly within their rights to contract with the promoter as long as they maintain their agreement with the city.
The present representation of Peru government should by now realize that it is their job insead of trying to produce two or three thousand dollars with a concert they should be trying to save hundreds of thousands with open competitive bidding for water treatment. It is a very inefficient business organization that monopolizes all of its time dabbling in a private business venture for a pittance of money and than attempts to wrap up a three million dollar 5 year contract in hours. What is the real reason this contract is being forced down the citizens throats. The real reason we don't know but we do know that when it comes out the other end things are going to get awful messy and it appears that the janatorial service for city hall best be prepared for next Monday evening. Limited public comment, countless closed sessions and super majority votes have become role models for inefficient government in the City of Peru.
9:51 Well said!
The city should have absolutely no costs for concerts, period. Promotor should incure all costs, period. Problem solved. Wonder if concerts would continue if promotor paid all costs. I'd bet my last penny there would be no more concerts. a closed session meeting regarding the bidding should not happen. We taxpayers have a right to hear the truth and nothing but the truth in what's being discussed. Doesn't say to much for all these department heads and politicians on how they were raised. Maybe a flyer should go out to all to re-enforce what the ten commandents say.
READ TODAY'S PAPER REGARDING A LETTER TO THE EDITOR. TREATMENT OF A 73 YEAR OLD AT A COUNCIL MEETING. PASS THIS AROUND.
This so called report on the concerts is like a Houdini trick! Harl is crowing, "See we make money!"
Those costs were supposed to be COMPLETELY paid for by the business and not have ANYTHING to do with the revenue streams!
That 1 buck a ticket and car fee is supposed to go free and clear to the city! All the costs are to be the burden of the promoter.
Email all the alderman and mayor. You can do this thru the City of Peru homepage, let them know open bidding is the only RIGHT thing to do. Jam their email boxes. And go to the meeting on Monday!!!
Also while you are e-mailing them about open bidding let them know how you feel about the concerts at the airport.
Don't forget the Ventura drive mess of a intersection , pickleball also(if you live around that), even if you don't. Taxpayers should stick together. Support each other. Taxpayers, it's not hard to outsmart city hall. Convention spending of some needs to be discussed and not swept under a rug. I could go on and on and on.
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